EU sets up Investment Framework under its Ukraine Facility, to boost investments for the recovery and reconstruction of Ukraine
The EU has just set up the Ukraine Investment Framework, the financial arm and an integral component of the €50 billion Ukraine Facility to incentivise public and private investments for the recovery and reconstruction of Ukraine.
At the inaugural meeting of the Steering Board of the Ukraine Investment Framework, on 17 April, EU Member States adopted the rules of procedure and the Strategic Orientations for the Ukraine Investment Framework, kick-starting work on the first investment programmes, expected to be signed at the Ukraine Recovery Conference on 11 and 12 June in Berlin. The Board provides strategic and operational guidance and ensures its alignment with the Ukraine Plan, Ukraine’s strategy for reforms and investments in the next four years, which has been positively assessed by the Commission this week.
The Ukraine Investment Framework is equipped with a financial package totalling €9.3 billion, with €7.8 billion for loan guarantees and €1.51 billion for blended finance. The Ukraine Investment Framework is expected to mobilise up to €40 billion in public and private investments over the next years.
“The Ukraine Investment Framework will focus on assisting small and medium-sized enterprises, municipalities, and regions, rebuilding infrastructure, and foster the green and digital transitions. Rebuilding Ukraine means rebuilding the country according to EU rules and standards. So, as we support Ukraine in its accession path, we also strengthen the investment environment based on our rules and standards so that growth and jobs can thrive”, said Neighbourhood and Enlargement Commission, Olivier Várhelyi, at the ‘Ukraine’s Future Summit’ in Brussels, co-organised by the European Commission and the Belgian Presidency of the European Union.
The conference gathers some 500 representatives of EU institutions, governments, financial institutions and businesses to discuss opportunities offered by the EU to mobilise investment into Ukraine’s recovery and reconstruction.
